BAO. Finance Token
What is BAO Finance (BAO)?
BAO is an innovative, fairly distributed Level 2 for synthetic decentralized financial assets, built on top of Uniswap, SushiSwap, and Balancer. The project is based on the ideology of synthetic assets. What does this mean in practice? That you can create any synthetic asset of your choice. For example, you can create tokens that track the Big Mac Index, Chinese Yuan, S&P 500 Index, etc.
The above should be added that the created synthetic tokens can be moved anywhere, anytime! The critical difference between BAO.Finance and other existing synthetic projects, such as Synthetix and UMA, are not required to have their asset as collateral to support the production of a synthetic analog.
Architecture design — what does a Level 2 token mean?
BAO wasn’t designed to perform any specific function within its ecosystem; it was built for use in existing systems, i.e., in fact, there are no scaling limits. For example, by using the assets of Uniswap, SushiSwap, and Balancer, you participate in the BAO ecosystem and vice versa. Roughly speaking, BAO is the first representative of L2 DeFi. They strive to add functions to their protocol on top of the existing infrastructure.
In BAO, users will create synthetic assets using their LP tokens from other protocols (projects) and when they deposit collateral to BAO.Finance earns BAO tokens used as part of the collateral (10%). They can then generate synthetic assets up to their collateral limit by burning a small commission in BAO. This opens up ample opportunities for users from both an investment and a trade point of view.
How are tokens distributed?
Before launching the synthetic asset issuance capability, BAO will use the yield sharing model created by YAM and SushiSwap to distribute BAO. The rates cover over 200 pools of various assets, considering both old and new projects with large and small market capitalization.
Each block in the Ethereum blockchain will distribute 1000BAO across the pools according to a proportional weighted distribution. The weekly reward modifier will also be used for the first two years to encourage early engagement and combat reward fatigue and inflation. This distribution will continue until the 1 trillion BAO tokens are released.
Lock function
The general term for blocking tokens is three years. During the blocking period, including the period of pool farming, users receive their income in BAO in the amount of 5%. The remaining 95% will be unfrozen after three years, and the user will receive a daily reward in BAO for the next three years, based on the amount he has frozen. For example, you have blocked an amount of $10000 in BAO for three years, which means 10000/3 = $3333 per year and 3333/365 = $9 per day. After unlocking the coins, your daily income will be $ 9 in BAO for the next three years.
How to make money on it right now?
From February 27 to March 1 of this year, BAO.Finance should have launched the staking function, as was done with Ethereum. The BAO becomes the first full-fledged cross-chain coin using the xDAI architecture. The ability to receive airdrops from 5 to 15% of related projects is also announced until more accurate information is available. Now the coin rate is approximately $0.00010.
BAO’s market cap is $ 33.4M, and TVL (total volume locked) is 60300000BAO. We determine the intrinsic value of the network (i.e., its actual value) as follows — 33400000/60300000 = $0.554. With steady growth in market cap, the network’s intrinsic value will continue to grow.
You can purchase BAO in any way convenient for you and transfer them to the official wallet for PANDA staking based on pandaswap farms and take part in the distribution of BAMBOO.
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